How to start your own Auto Mechanic Business

AUTO MECHANIC BUSINESS OWNER

Starting an auto mechanic business is an exciting time and it is a career move that has the potential to lead to a lifelong endeavor. There is a high level of reward and satisfaction that comes with owning and operating an auto mechanic business. However, there are a lot of areas to address before the business turns into a success. Starting an auto mechanic business takes a fair amount of preparation, diligence and work. Here is a closer look on how you can make the dream of starting an auto mechanic business into a reality.

Earn Certifications

Certifications issued by the ASE (National Institute for Automotive Service Excellence) are held in high regard in the auto repair industry. There are a number of reasons that it pays for auto mechanics to have attained ASE certifications when opening a business. Prior to even thinking about starting an auto mechanic business, it is important to start earning ASE certifications. Here’s a look at how ASE certification will help in that process:

Credibility

Customers want to feel confident when bringing their vehicles into a repair shop. ASE certifications are a way of making customers feel safe and secure. Certifications show that a mechanic has established a certain level of achievement and has become an elite member of that field.

Insurance

Opening up an auto mechanic business requires the purchase of insurance. That insurance becomes more expensive when auto mechanics are not certified. Without any certifications, the insurer could deem an auto mechanic as a liability. That could present significant issues with startup costs as insurance fees are a major part of the monthly expenses in an auto repair shop.

Marketing

When walking into an auto repair shop, it is customary to see various certifications posted on the wall. This is typically done as a way of showcasing that a mechanic has attained the necessary skills to conduct automotive repair. And when any kind of advertising is done, many auto mechanic shops use their certifications in their ads. It is a strong selling point for businesses.

Industry Knowledge

Diagnosing vehicle problems is not always an easy task. Auto mechanics need to identify what is wrong when a customer brings in a car that is not functioning properly. Being able to identify issues immediately comes with the experience and training that are necessary to acquire ASE certifications.

Estimate the Startup Costs

Starting an auto mechanic business requires a lot of financial planning. There is a need to account for acquiring a space for the shop, as well as tools, equipment and insurance. There is also a need to market the business as people are not going to automatically know a new shop has opened. Renting a facility may be cheaper than buying a space, although it might provide less freedom to make large scale changes. However, buying a space can be costly and adding construction costs is only going to increase that amount needed for startup. When estimating startup costs, it is important to add additional funding for any unforeseen expenses.

Choose a Location

The best auto mechanic in the world is not going to be successful in a location that does not draw any customers. It is important to scout potential locations and examine how it fares in terms of accessibility and traffic. During this process, it is also key to check out the nearby auto mechanic businesses and size up the competition. Locations that are already dense with auto repair businesses are not going to be as fruitful. It also helps to check out any zoning restrictions that may eliminate certain locations from being the future site of your auto mechanic business.

Select a Specialization

The best auto mechanic in the world is not going to be successful in a location that does not draw any customers. It is important to scout potential locations and examine how it fares in terms of accessibility and traffic. During this process, it is also key to check out the nearby auto mechanic businesses and size up the competition. Locations that are already dense with auto repair businesses are not going to be as fruitful. It also helps to check out any zoning restrictions that may eliminate certain locations from being the future site of your auto mechanic business.

Auto Service Technician

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Collision Repair Technician

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Paint Technician

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Light Truck Technician

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Heavy duty Truck Technician

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Bus Technician

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Specializations may prove to be an advantage, but they can also work against an auto mechanic shop. For example, if a shop has developed a reputation for doing excellent brake repair, then vehicle owners may not be as inclined to go there for an engine rebuild. That could impact income because brake repair is a lot cheaper than different kinds of engine work.

Most auto mechanic businesses offer general automotive repairs. When a business focuses on a specialty area, the potential clientele becomes more limited. That makes the startup process even more critical, as there are only so many potential customers. Car owners are easily the largest market segment, so there is always a wealth of potential customers when offering general automotive repair.

Licensing and Legal Issues

In order to run an auto mechanic repair shop, there is a process for obtaining a business license. Running a business also requires owners to adhere to liability regulations, tax reporting and submitting articles of incorporation. This process is rarely handled by an auto mechanic. There are attorneys that specialize in business law and hiring one is almost an essentiality in the start-up phase. It is also important to look into hiring an accountant to balance the books. That can become a daunting task for auto mechanics and also take away time from the regular duties that come with operating an auto mechanic business.

Staffing

It is futile to believe one auto mechanic will be able to handle the complete volume of business within a repair shop. As an owner/operator, there will be a lot of duties to attend to on a daily basis. That is why it is important to consider hiring a staff. This does not necessarily have to be a large staff, but one that can help out with the workload.

When hiring a staff, one of the prime factors is salary. Setting aside a certain amount of money for staff pay will help balance your budget. A staff does not have to include master mechanics, but should have enough to handle the workload. There may also be the need to hire a receptionist or someone who can assist in a clerical capacity. If money is a factor, then here is a look at some affordable options.

Hire entry-level mechanics

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Offer an apprenticeship program

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Consider part-time employees

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Provide Internships

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There is still the need to oversee work duties, which puts an auto mechanic shop owner in a supervisory role. There is also the option of relegating simpler job assignments to less experienced mechanics and reserving the more detailed and difficult jobs for veteran mechanics.

Marketing your Auto Mechanic Business

Growing an auto mechanic business is about more than just fixing cars and trucks. It also involves successful marketing as word needs to spread. That means that owners will have to explore several different areas of marketing and promotion. Here is a look at some of the marketing tactics auto mechanics can utilize when opening up a business.

Social media campaigns

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Customer loyalty programs

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E-mail marketing

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Quality blog and video content

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Weekly coupons

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It is also a good idea to hold a grand opening event and contact local media outlets in an effort to gain publicity. When a new shop opens, offering special discounts over the course of the first few weeks is an excellent way to attract new customers and show them all that you have to offer.

Branding your Auto Mechanic Business

Every auto mechanic business needs to have an identity. Building that identity comes with brand awareness. This is not a one-time occurrence, but rather an ongoing endeavor. It is extremely important to build a recognizable brand name. In the modern era, that means developing an online presence. Most people search for local businesses via the web and rely on online reviews when selecting where to go for products or services. However, not every branding effort has to be done online. Here is a mix of branding efforts that will boost your auto mechanic business.

Emphasis on the Customer

As important as it is for an auto mechanic business to be efficient with the mechanical parts of the job, it is equally important to place a high priority on customer service. This goes beyond being pleasant and forthright during customer interactions. It could involve something like creating a waiting area that is customer friendly. That area could be a point of emphasis when creating the layout of an auto mechanic business.

Another area that is important is maintaining contact with customers. Initiating follow-up calls or emails after a customer spends a certain amount of money can be instituted as company protocol. However, that process would need to be established prior to opening the business.

Customers have options and it is important to always be on the lookout for ways to create a top-notch customer experience. It will help with online reviews and word of mouth business. Preparing employees with a customer service training course is also a very good idea as it helps to establish a company culture.